SAS: The Future

Your thoughts on the future of SAS

In the current talk about SAS, I would like to say my opinion on the airline.

I think the best way for SAS, is to simply follow what happen to Swissair/Swiss and Sabena/Brussels Airlines. That is go into administration, the state creates a new airline with finance from a private investor or buy up a smaller airline, to buy up the old assets and re-invigorate the airline with brand new routes taking in to growing new markets.

Swiss for example was the old air-taxi company Crossair, that with help from the Swiss and cantonal (regional) governments bought the old assets, gave a re-jig and it is now fairly profitable.

For Brussels Airlines, a similar process of going into bankruptcy, the Belgian government setting up a intermediate airline called SN Brussels Airlines, later working with Virgin Express to create Brussels Airlines and going up and away.

IMO the government should sell it ASAP, whatever the cost. Apparently, the current government wants to sell SAS but have still not found a buyer. Rather have it go bankrupt than give more money to the crooks.

I thought the current government only sold profitable companies to private investors and pocketed nice little backhanders in the form of shares for their own portfolios.

What SAS needs is competent management, something they haven't had for several years. Their business model stinks to high heaven. As public service management quality is laughable in most enterprises here, it looks like private is the only way to go.

I thought the current government only sold profitable companies to private investors and pocketed nice little backhanders in the form of shares for their own portfolios.

It will never become profitable under the current owners. 50% of the shares are privately owned and the remaining 50% jointly owned by the states of Denmark, Norway and Sweden. This joint ownership between states is one of the big problems for SAS and why it will never become profitable (too much regional interests).

They need to go for long haul flights and even then there is no guarantee they can make it. Look at Norwegian now offering flights to NY and Bangkok. They are already undercutting established airlines like Thai and Qatar.

It will never become profitable under the current owners. 50% of the shares are privately owned and the remaining 50% jointly owned by the states of Denmark, Norway and Sweden
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It will never become profitable under the current owners. 50% of the shares are privately owned and the remaining 50% jointly owned by the states of Denmark, Norway and Sweden. This joint ownership between states is one of the big problems for SAS and why it will never become profitable (too much regional interests).
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Yes I am aware of that and agree with you. As I said, a poor business model. Just thought that I would have a pop at the Mods while I was there

Same issues with Saab, Sony Ericsson now SAS, management and change, they certainly cant think outside the box, no new business inventions, no creativity, relying heavily on tried and tested formulas, In today market, certainly works no longer, you go out of business before you blink an eye, You have other airlines coming on board and taking huge chunks of your market share, mainly low cost airlines, if for example the likes of Ryanair and Norwegian and offering cheaper flights to the UK, why cant SAS enter an agreement with a low cost airline or even create a no frills airline from Arlanda which will certainly stop these other smaller players in their tracks? BA are doing this as well, I am quite sure passengers will prefer to fly from Arlanda than vasteras or Skavsta, I hear Norwegian have raised the stakes, ordered a dreamliner 787 and will start flying to New York and Bangkok, how does SAS respond to this?? Norwegian airlines are even ordering brand new jets for crying out loud, their website crashed last week when they released advanced cheap flights to JFK, did SAS match them for price?? they even have WIFI on some flights, so it seems the management of Norwegian are very innovative and dynamic to change, right now there is a huge incentive for passengers to fly with other airlines besides SAS, I think that culture where employees have jobs for life needs to change, in this cut throat world, management especially need to be kept on their toes, in the UK for example, they will be relieved of their position, i believe if they get rid of SAS management, hire some competent people, start matching other low cost airlines, order some brand new jets of course, soon they will return to healthy profits, if they continue with things as they are now, no matter how much the government underwrites them, they will be bankrupt sooner enough

That would be both good and bad...good because we then get Ryanair flying from Luleå (and maybe south to Skavsta), so I could do Luleå-Skavsta, Skavsta-Edinburgh when going home to the UK for a visit (no more coach transfers, yippee!!).

However, we'd then be charged through the nose for our luggage, checking in, the privilege of paying (!!), you name it...!

I am given to understand that Ryanair's venture to buy out Aer Lingus is not to run it as a low cost airline using the same model. Rather they want to have some brand dispersion and run it as a going concern but yield cost and margin benefits through bulk buying of fuel, aircraft etc..

To be honest there seems to be less and less differences between Ryanair and SAS other than SAS gives you free coffee and has better airport choices... SAS still charges multiples of the Ryanair ticket fare however.

Problem with SAS is that it has been run like it is a public institution and is administration top heavy.

The main reason SAAB went bust was that their management refused to accept GMs recommendation to to use their production platform, which would have halved their outgoings. Instead, they went it alone and went bust.

Agree about SAS and Ryanair - not a huge enough difference to warrant the price difference in tickets. BA a lot more pleasant to fly with shorthaul Landvetter - Heathrow.